Equinor ASA (EQNR - Free Report) rose almost 7.7% since it reported strong fourth-quarter results on Feb 9. Higher commodity prices and increased contributions from the Martin Linge oil field buoyed the company’s fourth-quarter performance.
The energy major reported adjusted earnings per share of $1.36, beating the Zacks Consensus Estimate of $1.22. The bottom line turned around from the year-ago loss of 18 cents per share.
Total quarterly revenues increased to $32,608 million from $11,746 million in the prior-year quarter.
Equinor ASA Price, Consensus and EPS Surprise
Share Buyback
For 2022, Equinor announced the increase of the share buy-back program of up to $5 billion.
The energy major announced a quarterly dividend of 20 cents per share, suggesting an 11.1% increase from the prior dividend of 18 cents. Also, its board announced a special quarterly cash dividend of 20 cents per share for four-quarter 2021 and the first three quarters of 2022.
Segment Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $14,813 million, improving drastically from a profit of $1,841 million in the year-ago quarter. The improvement was led by higher production and liquid prices.
The company’s average daily production of liquids and gas jumped 12% year over year to 1,469 thousand barrels of oil equivalent per day (MBoe/d) due to the increased contributions from the Martin Linge oil field.
E&P International: The segment’s adjusted operating profit was recorded at $688 million, turning around from the year-ago loss of $1,215 million. Improvement in liquid and gas prices attributed to the outperformance.
Average daily equity production of liquids and gas decreased marginally to 339 MBoe/d from 340 MBoe/d in the year-ago quarter. Although an increase in production from Russia fields aided the segment, this was more than offset by a natural decline in mature fields.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $587 million against a loss of $172 million in the December-end quarter of 2020. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was recorded at 350 MBoe/d, down from 390 MBoe/d in the year-ago quarter due to the divestment of unconventional U.S. onshore assets.
Marketing, Midstream & Processing: The segment reported an adjusted loss of $1,007 million, significantly down from a profit of $352 million a year ago.
Renewables: The segment reported an adjusted loss of $38 million, narrower than a loss of $59 million in the year-ago quarter. Lower expenses associated with the Beacon Wind and Empire Wind properties aided the segment.
Free Cash Flows
In the December-end quarter, Equinor generated free cash flows of $8,578 million, improving from $1,363 million in the year-ago period. The improvement was owing to increased operating cashflows, backed by recovering liquids and gas prices.
Balance Sheet
As of Dec 31, 2021, Equinor reported $14,126 million in cash and cash equivalents. The company’s long-term debt amounted to $29,853 million at the quarter-end.
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Equinor reaffirmed production growth expectations at 2% for 2022.
For the 2022-2023 period, the company expects average organic capital spending of $10 billion per annum. For the 2024-2025 period, spending is expected to increase to $12 billion per annum.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. As of 2020-end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at 2019-end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY has also witnessed four upward revisions in the past 30 days. It currently has a Zacks Style Score of B for Momentum and Growth. OXY beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 13.7%, on average.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves at 6.1 billion BoE. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Marathon Petroleum Corporation (MPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. MPC reported fourth-quarter 2021 adjusted earnings of $1.30 per share, which comfortably beat the Zacks Consensus Estimate of 47 cents.
Marathon Petroleum is expected to see an earnings growth of 129.8% in 2022. As of Dec 31, MPC had cash and cash equivalents of $5.3 billion. Marathon Petroleum repurchased shares worth $3 billion in the October-January period and has now completed around 55% of its target to buy back $10 billion in common stock. Further planning to reward its shareholders, MPC announced a new $5-billion buyback program.
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Equinor ASA (EQNR - Free Report) rose almost 7.7% since it reported strong fourth-quarter results on Feb 9. Higher commodity prices and increased contributions from the Martin Linge oil field buoyed the company’s fourth-quarter performance.
The energy major reported adjusted earnings per share of $1.36, beating the Zacks Consensus Estimate of $1.22. The bottom line turned around from the year-ago loss of 18 cents per share.
Total quarterly revenues increased to $32,608 million from $11,746 million in the prior-year quarter.
Equinor ASA Price, Consensus and EPS Surprise
Share Buyback
For 2022, Equinor announced the increase of the share buy-back program of up to $5 billion.
The energy major announced a quarterly dividend of 20 cents per share, suggesting an 11.1% increase from the prior dividend of 18 cents. Also, its board announced a special quarterly cash dividend of 20 cents per share for four-quarter 2021 and the first three quarters of 2022.
Segment Analysis
Exploration & Production Norway (E&P Norway): The segment reported adjusted earnings of $14,813 million, improving drastically from a profit of $1,841 million in the year-ago quarter. The improvement was led by higher production and liquid prices.
The company’s average daily production of liquids and gas jumped 12% year over year to 1,469 thousand barrels of oil equivalent per day (MBoe/d) due to the increased contributions from the Martin Linge oil field.
E&P International: The segment’s adjusted operating profit was recorded at $688 million, turning around from the year-ago loss of $1,215 million. Improvement in liquid and gas prices attributed to the outperformance.
Average daily equity production of liquids and gas decreased marginally to 339 MBoe/d from 340 MBoe/d in the year-ago quarter. Although an increase in production from Russia fields aided the segment, this was more than offset by a natural decline in mature fields.
E&P USA: Through the segment, Equinor generated an adjusted quarterly profit of $587 million against a loss of $172 million in the December-end quarter of 2020. The outperformance was led by higher commodity prices.
The integrated firm’s average equity production of liquids and gas was recorded at 350 MBoe/d, down from 390 MBoe/d in the year-ago quarter due to the divestment of unconventional U.S. onshore assets.
Marketing, Midstream & Processing: The segment reported an adjusted loss of $1,007 million, significantly down from a profit of $352 million a year ago.
Renewables: The segment reported an adjusted loss of $38 million, narrower than a loss of $59 million in the year-ago quarter. Lower expenses associated with the Beacon Wind and Empire Wind properties aided the segment.
Free Cash Flows
In the December-end quarter, Equinor generated free cash flows of $8,578 million, improving from $1,363 million in the year-ago period. The improvement was owing to increased operating cashflows, backed by recovering liquids and gas prices.
Balance Sheet
As of Dec 31, 2021, Equinor reported $14,126 million in cash and cash equivalents. The company’s long-term debt amounted to $29,853 million at the quarter-end.
View
Equinor reaffirmed production growth expectations at 2% for 2022.
For the 2022-2023 period, the company expects average organic capital spending of $10 billion per annum. For the 2024-2025 period, spending is expected to increase to $12 billion per annum.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. As of 2020-end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at 2019-end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY has also witnessed four upward revisions in the past 30 days. It currently has a Zacks Style Score of B for Momentum and Growth. OXY beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 13.7%, on average.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves at 6.1 billion BoE. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Marathon Petroleum Corporation (MPC - Free Report) is a leading independent refiner, transporter and marketer of petroleum products. MPC reported fourth-quarter 2021 adjusted earnings of $1.30 per share, which comfortably beat the Zacks Consensus Estimate of 47 cents.
Marathon Petroleum is expected to see an earnings growth of 129.8% in 2022. As of Dec 31, MPC had cash and cash equivalents of $5.3 billion. Marathon Petroleum repurchased shares worth $3 billion in the October-January period and has now completed around 55% of its target to buy back $10 billion in common stock. Further planning to reward its shareholders, MPC announced a new $5-billion buyback program.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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